Silver Lake and DST Begin Tender Offer for Alibaba Shares

An investment group that includes Silver Lake Partners and DST Global said Thursday that it would begin a $1.6 billion tender offer for shares in the Alibaba Group, the Chinese e-commerce giant.

The program, which is scheduled to begin on Thursday, will value Alibaba at more than $32 billion, according to people with knowledge of the matter. It is expected to close in the next four to six weeks.

Others participating in the deal include Yunfeng Capital, a Chinese private equity firm, and Temasek, a Singaporean sovereign wealth fund.

“This liquidity program will allow our people to focus on growing our business and continuing to create value,” Jack Ma, Alibaba’s chief executive, said in a statement. “We believe the high-quality investors making commitments to this important program share our mission and philosophy, and we welcome them as shareholders of the company.”

The tender offer reflects Silver Lake and DST’s growing interest in the region. According one person briefed on the matter, Silver Lake will contribute about $300 million for the equity portion of the offer.

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The deal is Silver Lake’s third major investment in China. Last year, it paid $180 million for a controlling stake in Allyes, an Internet advertising business that was previously owned by Focus Media.

The deal may also help the private equity firm curry favor with Mr. Ma, who is also a co-founder of Yunfeng. Silver Lake is one of several private equity firms considering making an offer for Yahoo, according to two people with knowledge of the matter.

But any sale of all or part of Yahoo would likely be complex because of Yahoo’s Asian assets, according to analysts. Yahoo owns about a 40 percent stake in the Alibaba Group and a 35 percent stake in Yahoo Japan. While Yahoo’s board has yet to decide how it will handle those assets, Mr. Ma — whose relationship with the American Internet company is tense — is expected to be a major voice in the process.

At its current valuation, Yahoo’s stake in Alibaba is worth more than $13 billion.

“We have developed a strong relationship with Alibaba’s management over several years, and this commitment reflects our confidence in the company’s leadership position and the growth of the e-commerce market in China,” Ken Hao, a Silver Lake managing director said in a statement.